The Spot Rate on a Non-Dividend-Paying Stock Is $15

question 2

Multiple Choice

The spot rate on a non-dividend-paying stock is $15.70.The risk-free rate is 3.15 percent and the market rate is 10.75 percent.What is the three-month futures rate if spot-futures parity exists?

• A) $15.48
• B) $15.82
• C) $16.01
• D) $16.13
• E) $16.24

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